As the Federal Reserve Board raises short-term interest rates over the next 15 months, the yield curve will flatten and the rate on the 30-year fixed-rate mortgage will rise to 6.6% by year-end and hover around 6.8% in 2005, according to a survey of economists by The Bond Market Association.The rise in interest rates "will not make housing unaffordable," said Richard Berner, chief economist for Morgan Stanley & Co. In fact the June survey shows that the economists expect 2004 will be another record year for home sales -- but by a very slim margin. (The survey was taken before the May existing- and new-home sales numbers came out, which established new monthly records.) While the respondents believe inflation will remain moderate, they are wary that an uptick could force the Fed to raise rates more aggressively. "There is some upside risk that shouldn't be overlooked," said Michael Decker, TBMA's senior vice president for research and policy. "Inflation could pick up if the economy grows faster than expected or labor costs increase."
-
A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
8h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
11h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11